Bollenbach Checking Out Of Hilton, Into KB

Stephen Bollenbach hasn't even left his last job and already he's lined up a new one. After a successful stint running Hilton Hotels, from which he has announced he would retire by the end of this year, Bollenbach is taking over as nonexecutive chairman of KB Home, a company equally battered by the declining U.S. housing market and substandard corporate governance.

In November,
KB Home
's former chief executive, Bruce Karatz, resigned after an internal probe determined that the company used incorrect measurement dates for fiscal reporting of yearly stock option grants between 1998 and 2005. Karatz had to repay $13 million in compensation.

But perhaps Bollenbach, the builder's first independent, nonexecutive chairman, can help it dig out of the current hole.

The homebuilder said it created the new position in November 2006 in order to enhance its corporate governance practices. Following the resignation of Karatz, KB Home said it revamped its method of granting stock to executives. The responsibility for such actions will now rest with independent board members, rather than management.

Bollenbach brings a lot of boardroom experience to the new gig. Since 1996, he has served as CEO of
Hilton Hotels
. At Hilton, Bollenbach oversaw the acquisition of Hilton International and the acquisition of Promus Hotel, as well as the spin-off of Hilton's gaming company. Prior to joing Hilton, he worked as senior executive vice president and chief financial officer for
Walt Disney.
He also serves on the boards of
Harrah's Entertainment Group
and
Time Warner.

"This is an exciting opportunity for me personally and professionally," Bollenbach said in a statement. "Personally as a native Angeleno and professionally because these are challenging times in the housing industry."